How Will Filing for Bankruptcy Affect My Divorce?

Divorce can be a complicated and expensive process depending on your situation,
and in some cases those costs, whether they’re related to the divorce
proceedings or other factors can put a considerable strain on your financial
situation.

It’s not uncommon for people to file for bankruptcy before or during
their divorce, and it’s important to understand how it can affect
your situation. Filing for bankruptcy will not have an effect on establishing
child custody or support, but it will stop the proceedings over how your
property will be divided. Instead, your property will become part of your
bankruptcy estate, and a stay will automatically go into effect prohibiting
actions to exercise control obtain that property.

Whether you file for Chapter 7 or Chapter 13 bankruptcy, the court will
appoint a bankruptcy trustee to your case, and they will have different
powers depending on which type of bankruptcy you filed for.

If you filed for Chapter 13 bankruptcy, the trustee will not sell your
property off to pay back your creditors. They will still need to determine
the value of that property in order to determine what you owe your creditors,
and will set a three-to-five-year repayment plan for you to follow. In
Chapter 7 bankruptcy, the trustee will have the power to sell off your
assets in order to pay back creditors – if they sell off joint property,
then your spouse will be paid the value of their share from those funds.

At the Harris Law Firm, our Denver divorce attorneys have spent years working
with people across Colorado in need of experienced and passionate legal
representation. We understand just how difficult a divorce can be to both
you and your entire family, and we will work with you every step of the
way to ensure that you are put in the best position possible to secure
the outcome you need.
Send us the details of your case through our online form to schedule a private consultation with a member of our firm, or call
us at (303) 622-5502 today to discuss your options moving forward.

Contact Our Colorado
Family Law Firm

If you are in need of a compassionate, skilled, and experienced Colorado
family law attorney, The Harris Law Firm can help. If you have a legal
question about a domestic relations issue, including divorce and the allocation
of parental rights, please complete our contact form below. A member of
our legal team will be in touch with you soon to arrange a private consultation
with one of our experienced attorneys. Together we can find a resolution.